Centre To Raise DA By 5 Percent, Lets See The Impact In Your Salary
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Centre To Raise DA By 5 Percent, Lets See The Impact In Your Salary

Even though the inflation rate has surged above the benchmarked comfort zone of 2-6 per cent of the Reserve Bank of India, the Centre is likely to raise DA by 5 per cent to provide financial relief to its employees and pensioners. CPI inflation has reached its highest peak in eight years, and various commodity prices are ready to touch the roof. So, under the 7th pay commission, the Government is likely to go for another hike to provide some relief in the light of sugaring inflation.

Centre To Raise DA By 5 Percent, Lets See The Impact In Your Salary

Centre To Raise DA By 5 Percent

Informed to a Zee News report, the Government may go for a DA hike of 5 per cent in July. If the news comes true then the Central Government employees will get a DA of 39 per cent. Whereas the employees are currently getting a DA of 34 per cent, and after the hike of 5 per cent they will receive a 39 per cent DA over their basic pay. You should know that Dearness Allowance or DA is for Government employees and Dearness Relief or (DR) is for pensioners.

Modifications in the All India Consumer Price Index (AICPI) lead to changes made in DA offered to the employees. Now that the AICPI is touching highs, the chances that employees will receive a hiked DA are more. The retail inflation rate is also standing above 7.02 as compared to the comfort zone of RBI which is 2-6 per cent.

Earlier, the central government had also halted the instalment of DA and DR for the employees and pensioners for “January 1, 2020, July 1, 2020, and January 1, 2021”, to handle the unexpected and unprecedented situations that occurred due to Covid-19 pandemic. Finance Minister Nirmala Sitharaman also asserted that by halting the instalments of DA and DR they saved a large corpus of ₹34,402 Cr. This was said by her in a written reply after a question occurred in Rajya Sabha in August last year.

Also read:

New GST Rates Will Be In Effect From July 18, Not From July 1

How Is DA Calculation Made?

“Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.”

“For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.”

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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